Single Audit or Program-Specific Audit Reporting Package Checklist

Transcription

1 Single Audit or Program-Specific Audit Reporting Package Checklist Subrecipient Name: Southern Huntingdon County School District Fiscal Year End: 06/30/2015 Format: MM/DD/YYYY Address: Pogue Road Three Springs, PA Contact Name: Luanne Keebaugh Contact Title: Business Manager Contact Number: (814) Format: (XXX)XXX-XXXX The subrecipient who qualifies to submit a complete Single Audit Reporting Package must include the following essential elements: Independent Auditor's Report on the financial statements Financial statements and notes to the financial statements Independent Auditor's Report on the Schedule of Expenditures of Federal Awards (SEFA) Schedule of Expenditures of Federal Awards (SEFA) A report on compliance & internal control at the financial statement level in accordance with Government Auditing Standards A report on compliance & internal control at the federal level in accordance with OMB Circular A-133 Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings (if applicable) Corrective Action Plan (if applicable) Data Collection Form Management Letter (if applicable) The subrecipient who qualifies to submit a complete Program-Specific Audit Reporting Package must include the following essential elements: Independent Auditor's Report on the federal program's financial statements or the federal program's SEFA Financial statements or SEFA of the federal program and notes to the program's financial statements or SEFA A report on compliance & internal control related to the federal program Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings (if applicable) Corrective Action Plan (if applicable) Data Collection Form Management Letter (if applicable) Print Checklist

2 OMB No U.S. Dept. of Comm. Econ and Stat Admin. U.S. Census Bureau 09/17/2013 ACTING AS COLLECTING AGENT FOR OFFICE OF MANAGEMENT AND BUDGET GENERAL INFORMATION REPORTID: VERSION:1 1. Fiscal Period End Date 2. Type of Circular A 133 Audit 6/30/2015 Single Audit 3. Audit Period Covered If Audit Period Other, Number of months Annual 4. Auditee Identification Numbers a. Auditee Employer Identification Number (EIN) d. Auditee Data Universal Numbering System (DUNS) Number b. Are multiple EINS covered in this report? e. Are multiple DUNS covered in this report? No No If Yes, the additional EINs are listed on Additional EINS If Yes, the additional DUNS are listed on Additional DUNS 5. AUDITEE INFORMATION 6. PRIMARY AUDITOR INFORMATION a.auditee Name a.audit Firm / Organization Name SOUTHERN HUNTINGDON COUNTY SCHOOL DISTRI BOYER & RITTER LLC b.audit Firm / Organization EIN b.auditee Address (Number and street) c.audit Firm / Organization Address (Number and street) POGUE ROAD 1137 KENNEBEC DRIVE Auditee City Auditor Firm/Organization City THREE SPRINGS CHAMBERSBURG Auditee State Auditor Firm/Organization State PA PA Auditee ZIP Code Auditor Firm/Organization ZIP Code c.auditee Contact Name d.primary Auditor Name LUANNE KEEBAUGH CHARLES W. FRAME III, CPA Auditee Contact Title Primary Auditor Title BUSINESS MANAGER PRINCIPAL d.auditee Contact Telephone e.primary Auditor Contact Telephone (814) (717) e.auditee Contact Fax f.primary Auditor Contact Fax (814) (717) f.auditee Contact E mail g.primary Auditor Contact E mail LKEEBAUGH@SHCSD.ORG CFRAME@CPABR.COM 7. Was a secondary auditor used? No 8. If Yes, the additional auditors are listed on Secondary Auditors General Info

3 Form SF SAC Single Audit Data Collection Form REPORTID: VERSION:1 FINANCIAL STATEMENTS SUMMARY 1.Type of audit report Unmodified 2. Is a 'going concern' emphasis of matter paragraph included in the audit report? No 3.Is a significant deficiency disclosed? Yes 4.Is a material weakness disclosed? No 5.Is a material noncompliance disclosed? No FEDERAL PROGRAMS SUMMARY 1.Does the auditor's report include a statement that the auditee's financial statements include departments, agencies, or other organizational units expending $500,000 or more in Federal awards that have separate A 133 audits which are not included in this audit? (AICPA Audit Guide) No 2.What is the dollar threshold to distinguish Type A and Type B programs? (OMB Circular A 133 _.520(b)) $300,000 3.Did the auditee qualify as a low risk auditee? ( _.530) Yes 4.Were Prior Audit Findings related to direct funding shown in the Summary Schedule of Prior Audit Findings? ( _.315(b)) No 5.Indicate which Federal agency(ies) have current year audit findings related to direct funding or prior audit findings shown in the Summary Schedule of Prior Audit Findings related to direct funding. None Audit Info

4 Form SF SAC Single Audit Data Collection Form 6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR REPORTID: VERSION:1 1 Federal Agency Prefix Extension 2 Federal Program Name Amount Expended (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) R&D Loan/Loan Guarantee ARRA 3 Direct Award Major Program (MP) audit report 4 If yes (MP), type of Number of Audit Findings TITLE I GRANTS TO LOCAL EDUCATIONAL AGENC$226,368 N N N N Y Unmodified TITLE I REWARD SCHOOL GRANT $48,449 N N N N Y Unmodified TITLE I PROGRAM IMPROVEMENT SET ASIDE $56,565 N N N N Y Unmodified TITLE II IMPROVING TEACHER QUALITY $83,680 N N N N N CSTRIVING READERS COMPREHENSIVE LITERACY P $805,797 N N N N N CSTRIVING READERS COMPREHENSIVE LITERACY P $21,000 N N N N N TWENTY FIRST CENTURY COMMUNITY LEARNING$62,625 N N N N N SPECIAL EDUCATION GRANTS TO STATES $206,225 N N N N N SPECIAL EDUCATION PRESCHOOL GRANTS $1,971 N N N N N TITLE XIX MEDICAL ASSISTANCE PROGRAM $2,178 N N N N N NATIONAL SCHOOL LUNCH PROGRAM $256,209 N N N N Y Qualified NATIONAL SCHOOL LUNCH PROGRAM FOOD DO$27,826 N N N N Y Qualified SCHOOL BREAKFAST PROGRAM $67,822 N N N N Y Qualified 2 Total Federal Awards Expended: $1,866,715 Federal Awards

5 Form SF SAC Single Audit Data Collection Form 7. FEDERAL AWARD FINDINGS REPORTID: VERSION:1 Compliance Findings 2 Internal Control Findings 2 Federal Agency Prefix Extension Federal Program Name Audit Finding Reference Number Type(s) of Compliance Requirement(s) 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) TITLE I GRANTS TO LOCAL EDUCATIO P N N N Y N N TITLE I GRANTS TO LOCAL EDUCATIO P N N N Y N N TITLE I REWARD SCHOOL GRANT P N N N Y N N TITLE I REWARD SCHOOL GRANT P N N N Y N N TITLE I PROGRAM IMPROVEMENT SE P N N N Y N N TITLE I PROGRAM IMPROVEMENT SE P N N N Y N N NATIONAL SCHOOL LUNCH PROGRAM P N N N Y N N NATIONAL SCHOOL LUNCH PROGRAM N Y N N N N N NATIONAL SCHOOL LUNCH PROGRAM P N N N Y N N NATIONAL SCHOOL LUNCH PROGRAM N Y N N N N N SCHOOL BREAKFAST PROGRAM P N N N Y N N SCHOOL BREAKFAST PROGRAM N Y N N N N N Modified Opinion Other Matters Material Weakness Significant Deficiency Other Findings 2 Questioned Costs 1 Enter the letter(s) of all type(s) of compliance requirement(s) that apply to audit findings (i.e., noncompliance, significant deficiency (including material 2 There are 9 valid combinations of 'Compliance Findings,' 'Internal Control Findings,' and 'Other Findings' for each Federal program with findings. (See in Audit Findings

6 weaknesses,), questioned costs, fraud, and other items reported under _.510(a)) reported for each Federal program. structions Item 7) Audit Findings

7 Form SF SAC Single Audit Data Collection Form REPORTID: VERSION:1 PART I, Item 4c. AUDITEE EIN CONTINUATION SHEET (FROM PART I, ITEM 4b) Additional EINs

8 Form SF SAC Single Audit Data Collection Form REPORTID: VERSION:1 PART I, Item 4f. AUDITEE DUNS CONTINUATION SHEET (FROM PART I, ITEM 4e) Additional DUNS

9 Form SF SAC Single Audit Data Collection Form PART I, Item 8, SECONDARY AUDITORS' CONTACT INFORMATION REPORTID: VERSION:1 Contact Auditor Firm Name Auditor EIN Auditor Address City State ZIP Code Contact Name Contact Title Phone Contact Fax Contact E mail (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Secondary Auditors

10 Form SF SAC Single Audit Data Collection Form REPORTID: VERSION:1 CERTIFICATIONS Auditee Certification Statement Auditor Statement This is to certify that, to the best of my knowledge and The data elements and information included in this belief, the auditee has: (1) engaged an auditor to form are limited to those prescribed by OMB Circular A perform an audit in accordance with the provisions of 133. Except for Part III, Items 4, 5, 6a 6h, and, when OMB Circular A 133 for the period described in Part I, audit findings are reported, 7a 7c, the information Items 1 and 3; (2) the auditor has completed such audit included in Parts II and III of this form was transferred and presented a signed audit report which states that from the auditor's report(s) for the period described in the audit was conducted in accordance with the Part I, Items 1 and 3, and is not a substitute for such provisions of the Circular; and (3) the information reports. A copy of the reporting package required by included in Parts I, II, and III of this data collection form OMB Circular A 133, which includes the complete is accurate and complete. I declare that the foregoing auditor s report(s), is available in its entirety from the is true and correct. auditee at the address provided in Part I of this form. As required by OMB Circular A 133, the information in Parts II and III of this form was entered in this form by the auditor based on information included in the reporting package. The auditor has not performed any additional auditing procedures in connection with the completion of this form. Auditee Certification Auditor Statement ELECTRONICALLY CERTIFIED: 1/19/2016 ELECTRONICALLY CERTIFIED: 1/19/2016 Name of certifying official LUANNE KEEBAUGH Title of certifying official BUSINESS MANAGER

11 1 The letters entered in the 'Type(s) of Compliance Requirements' field apply to audit findings (i.e., noncompliance, significant deficiency (including questioned costs, fraud, and other items reported under _.510(a)) reported for each Federal program: A. Activities Allowed or Unallowed B. Allowable costs/cost principles C. Cash management D. Davis Bacon Act E. Eligibility F. Equipment and real property management G. Matching, level of effort, earmarking H. Period of availability of Federal funds I. Procurement and suspension and debarment J. Program income K. Real property acquisition and relocation assistance L. Reporting M. Subrecipient monitoring N. Special tests and provisions O. None (2008 through 2012 Only) P. Other

12 SOUTHERN HUNTINGDON COUNTY SCHOOL DISTRICT FINANCIAL REPORT JUNE 30, 2015

13 CONTENTS INDEPENDENT AUDITOR'S REPORT 1-3 Management s Discussion and Analysis 4-12 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities 15 Fund Financial Statements: Balance Sheet - Governmental Funds 16 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 19 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Statement of Net Position - Proprietary Fund - Food Service 23 Statement of Revenues, Expenses and Change in Net Position - Proprietary Fund - Food Service 24 Statement of Cash Flows - Proprietary Fund - Food Service Statement of Fiduciary Net Position 27 Statement of Changes in Fiduciary Net Position - Combined Scholarship Trust Funds 28 Notes to Financial Statements 29-57

14 CONTENTS (Continued) REQUIRED SUPPLEMENTARY INFORMATION Post-Employment Benefits Plan - Schedule of Funding Progress 58 Schedule of the District s Proportionate Share of the Net Pension Liability 59 Schedule of District s Contributions 60 SUPPLEMENTARY INFORMATION Independent Auditor s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance as Required by OMB Circular A Schedule of Findings and Questioned Costs Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards 73 Summary Schedule of Prior Year s Audit Findings 74 Corrective Action Plan 75

15 INDEPENDENT AUDITOR'S REPORT Board of School Directors Southern Huntingdon County School District Three Springs, Pennsylvania Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activity, each major fund, the aggregate remaining fund information of Southern Huntingdon County School District, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

16 We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial positions of the governmental activities, the business-type activity, each major fund, and the aggregate remaining fund information of Southern Huntingdon County School District, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As disclosed in Note 1 to the financial statements, the District adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions as of July 1, The District expanded its note disclosures and required supplementary information related to its pension plans. In addition, other balances have been restated as of July 1, 2014, to correct certain errors in prior year s financial statements. All of these restatements are discussed in Note 16. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management s Discussion & Analysis on pages 4 through 12 and the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Southern Huntingdon County School District s basic financial statements. The Schedule of Expenditures of Federal Awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2

17 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2015, on our consideration of Southern Huntingdon County School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Southern Huntingdon County School District s internal control over financial reporting and compliance Chambersburg, Pennsylvania December 21,

18 MANAGEMENT S DISCUSSION & ANALYSIS (MD&A) June 30, 2015 The discussion and analysis of Southern Huntingdon County School District s (District) financial performance provides an overall review of the District s financial activities for the fiscal year ended June 30, The intent of this discussion and analysis is to look at the District s financial performance as a whole; readers should also review the basic financial statements and notes to the financial statements to enhance their understanding of the District s financial performance. Management s Discussion & Analysis (MD&A) is an element of the reporting model adopted by the Governmental Accounting Standards Board (GASB) in its Statement No. 34, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments, issued in June Certain comparative information between the current year and the prior year is required to be presented in MD&A. Financial Highlights Real Estate Tax For the July 2014 real estate tax levy, the Southern Huntingdon County School Board millage rate increased from mills to mills. The District s current collection rate for real estate taxes is 88.02%, so approximately $86,281 for each mill of tax levied was collected in the current year. GASB 68 Implementation For the fiscal year the District has implemented GASB Statement No. 68 which has caused a restatement of net position at July 1, 2014, to reflect the net pension liability for the District s proportionate share of the PSERS net position liability as of June 30, Cafeteria Fund The Cafeteria Fund was a little better compared to other years. At year-end, the Cafeteria Fund sustained a loss of $17,252 compared to $62,526 for , compared to $50,277 for , and a loss of $45,213 for

19 Table A-1 summarizes the major features of the District s financial statements, including the portions of the District that the statements cover and the types of information that the statements contain. The remainder of this overview section of MD&A explains the structure and contents of the statements. Table A-1 Major Features of Southern Huntingdon County School District s Government-Wide and Fund Financial Statements Scope Required Financial Information Government-Wide Statements Entire District (except fiduciary funds) Statement of Net Position Statement of Activities Fund Statements Governmental Funds Proprietary Funds Fiduciary Funds Activities of the Activities the District Activities in which District that are not operates similar to the District is the proprietary or private business - trustee or agent for fiduciary, such as Food Service someone else s education, resources - administration and Scholarship Funds community services and Activity Funds Balance Sheet Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances Statement of Revenues, Expenses and Change in Net Position Statement of Cash Flows Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Accounting Basis and Measurement Focus Type of asset/liability information Type of inflow/ outflow information Accrual accounting and economicresources focus All assets and liabilities, both financial and capital, and short-term and long-term All revenues and expenses during the year, regardless of when cash is received or paid Modified-accrual accounting and current financialresources focus Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter Accrual accounting and economicresources focus All assets and liabilities, both financial and capital, and short-term and long-term All revenues and expenses during the year, regardless of when cash is received or paid Accrual accounting and economicresources focus All assets and liabilities, both shortterm and long-term All revenues and expenses during the year, regardless of when cash is received or paid 5

20 Overview of Financial Statements Government-Wide Statements The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the government s assets and liabilities. All of the current year s revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. The two government-wide statements report the District s net position and how it has changed. Net position, the difference between the District s assets and liabilities, are one way to measure the District s financial health or position. Over time, increases or decreases in the District s net position indicate whether the District s financial health is improving or deteriorating, respectively. To assess the overall health of the District, additional, non-financial factors, such as changes in the District s property-tax base and the performance of students, must be considered. The government-wide financial statements of the District are divided into two categories: Governmental activities - All of the District s basic services are included here, such as instruction, administration and community services. Property taxes and state and Federal subsidies and grants finance most of these activities. Business-Type activity - The District operates a food-service operation and charges fees to students, staff, and visitors to cover the costs of the food-service operation. Fund Financial Statements The District s fund financial statements provide detailed information about the most significant funds - not the District as a whole. Some funds are required by state law and by bond requirements. Governmental funds - Most of the District s activities are reported in governmental funds, which focus on the determination of financial position and changes in financial position, not on income determination. They are reported using an accounting method called modified-accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental-fund statements provide a detailed, short-term view of the District s operations and services it provides. Governmental-fund information helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the District s programs. The relationships (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. Proprietary fund - This fund is used to account for the District s activity that is similar to business operations in the private sector, or where the reporting focuses on determining net income, financial position, changes in financial position, and where a significant portion of funding comes through user charges. When the District charges customers for services it provides - whether to outside customers or to other units within the District - these services are generally reported in the proprietary fund. The Food Service Fund is the District s proprietary fund and is the same as the business-type activity reported in the government-wide statements. 6

21 Fiduciary funds - The District is the trustee, or fiduciary, for several scholarship funds. We exclude these activities from the District s government-wide financial statements because the District cannot use these assets to finance operations. The District maintains two fiduciary funds, Combined Scholarship Trust Funds and a Student Activity Fund. Financial Analysis of the District as a Whole The District s total net position was a ($7,073,381) at June 30, 2015, which reflects the district share of PSERS retirement. The District s total net position without the PSERS net pension liability would be $11,806,619. Table A-2 As of June 30, 2015 and 2014 Net Position Governmental Activities Business-Type Activity Total 6/30/15 6/30/14 6/30/15 6/30/14 6/30/15 6/30/14 Current and other assets $ 9,285,606 $ 8,192,423 $ 60,623 $ 35,501 $ 9,346,229 $ 8,227,924 Capital assets 11,203,627 11,694,906 43,399 46,874 11,247,026 11,741,780 Total assets 20,489,233 19,887, ,022 82,375 20,593,255 19,969,704 Deferred amounts on pension 1,287,981-41,019-1,329,000 - Deferred amounts on refunding debt 28,411 36, ,411 36,385 Total deferred outflows of resources 1,316,392 36,385 41,019-1,357,411 36,385 Total assets and deferred ouflows of resources $ 21,805,625 $ 19,923,714 $ 145,041 $ 82,375 $ 21,950,666 $ 20,006,089 Current and other liabilities $ 1,415,290 $ 1,317,145 $ 98,191 $ 106,184 $ 1,513,481 $ 1,423,329 Long-term liabilities 24,561,873 6,885, ,693-25,170,566 6,885,897 Total liabilities 25,977,163 8,203, , ,184 26,684,047 8,309,226 Deferred amounts on pension 2,267,778-72,222-2,340,000 - Total deferred inflows of resources 2,267,778-72,222-2,340,000 - Net investment in capital assets 6,043,249 5,842,247 43,399 46,874 6,086,648 5,889,121 Restricted 2,308,071 2,395, ,308,071 2,395,398 Unrestricted (14,790,636) 3,483,027 (677,464) (70,683) (15,468,100) 3,412,344 Total net position (6,439,316) 11,720,672 (634,065) (23,809) (7,073,381) 11,696,863 Total liabilities, deferred inflows of resources and net position $ 21,805,625 $ 19,923,714 $ 145,041 $ 82,375 $ 21,950,666 $ 20,006,089 Most of the District s net position is invested in capital assets (land, site improvements, buildings, and equipment) or are restricted for a specific purpose. The restricted balances are amounts set aside to fund future purchases or capital projects as planned by the District. The results of this year s operations as a whole are reported in the Statement of Activities. All expenses are reported in the first column. User charges, grants, revenues, and subsidies that directly relate to specific expense categories are presented to determine the final amount of the District s activities that are supported by other general revenues. The two largest general revenues are the Basic Education Subsidy provided by the Commonwealth of Pennsylvania and local taxes assessed to community taxpayers. 7

22 Table A-3 presents information from the Statement of Activities in a different format. Table A-3 Fiscal Years Ended June 30, 2015 and 2014 Changes in Net Position Governmental Activities Business-Type Activity Total 6/30/15 6/30/14 6/30/15 6/30/14 6/30/15 6/30/14 Revenues Program revenues Charges for services $ 108,090 $ 133,845 $ 304,158 $ 278,711 $ 412,248 $ 412,556 Operating grants and contributions 4,808,322 4,487, , ,390 5,212,880 4,849,277 General revenues Property taxes 3,863,612 3,511, ,863,612 3,511,864 Other taxes 726, , , ,152 Grants, subsidies and contributions, not restricted 6,915,814 6,884, ,915,814 6,884,774 Miscellaneous 104,374 67, ,701 67,768 Transfers ,489-12,489 - Total revenues 16,526,260 15,801, , ,378 17,247,792 16,441,391 Expenses Instruction 10,273,857 9,501, ,273,857 9,501,536 Instructional student support 1,098,178 1,062, ,098,178 1,062,589 Administration and financial support 1,095,108 1,083, ,095,108 1,083,216 Operation and maint. of plant services 1,614,984 1,617, ,614,984 1,617,359 Pupil transportation 1,117,952 1,107, ,117,952 1,107,637 Student activities 269, , , ,559 Community services Interest on long-term debt 168, , , ,357 Other 3,015 37, ,015 38,742 Food service , , , ,078 Transfers 12, ,489 - Total expenses 15,653,973 14,836, , ,904 16,392,757 15,539,155 Changes in net position $ 872,287 $ 964,762 $ (17,252) $ (62,526) $ 855,035 $ 902,236 8

23 Tables A-4 and A-5 below present the expenses of both the Governmental Activities and the Business- Type Activity of the District. Table A-4 presents the District s seven (7) largest functions - instruction, instructional student support, administration and financial support, operation and maintenance of plant services, pupil transportation, student activities, and community services and each program s net cost (total cost less revenues generated by the activities). This table also shows the net costs offset by the other unrestricted grants, subsidies, and contributions to show the remaining financial needs supported by local taxes and other miscellaneous revenues. Table A-4 Fiscal Years Ended June 30, 2015 and 2014 Governmental Activities Total Cost Net Cost of Services of Services Functions/Programs 6/30/2015 6/30/2014 6/30/2015 6/30/2014 Instruction $ 10,273,857 $ 9,501,536 $ 6,801,097 $ 6,476,022 Instructional student support 1,098,178 1,062, , ,827 Administration and financial support 1,095,108 1,083, , ,876 Operation and maintenance of plant services 1,614,984 1,617,359 1,542,815 1,550,442 Pupil transportation 1,117,952 1,107, , ,805 Student activities 269, , , ,918 Community services Interest on long-term debt 168, , , ,713 Total governmental activities $ 15,638,469 $ 14,798,335 10,722,057 10,176,603 Less unrestricted grants, subsidies, and contributions (6,915,814) (6,884,774) Total needs for grants, taxes and other revenues $ 3,806,243 $ 3,291,829 Table A-5 reflects the activities of the Food Service Program, the only business-type activity of the District. Table A-5 Fiscal Years Ended June 30, 2015 and 2014 Business-Type Activity Total Cost Net Cost of Services of Services Functions/Programs 6/30/2015 6/30/2014 6/30/2015 6/30/2014 Food services $ 738,784 $ 702,078 $ 30,068 $ 61,977 Less investment earnings (327) (277) Less transfers in (12,489) - Miscellaneous expense Total business-type activity $ 17,252 $ 62,526 The Statement of Revenues, Expenses and Changes in Net Position for this proprietary fund will provide details of the actual results of operations. 9

24 The District Funds At June 30, 2015, the District s governmental funds reported a combined fund balance of $7,458,297, which reflects an increase of $788,756 from June 30, The primary reason for this increase was receiving more earned income taxes during the year than anticipated and more Real Estate Transfer and Delinquent taxes and cutting costs in the maintenance area and the administrative costs. General Fund Budget During the fiscal year, the Board of School Directors did authorize a revision to the original budget to reclassify IDEA B funds, totaling $205,803, from Federal Revenue to Pass Thru revenue, but did not authorize any other revisions to the original budget to accommodate differences from the original budget to actual expenditures of the District. Therefore, the Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund reports the same numbers in both original and final budget columns except for the local and federal revenue. A schedule showing the District s original and final budgeted amounts compared with amounts actually paid and received is provided in the financial statements. Table A-6 Fiscal Years Ended June 30, 2015 and 2014 General Fund Budget Summary Original Budget Final Budget Variance 6/30/15 6/30/14 6/30/15 6/30/14 6/30/15 6/30/14 Revenues Local $ 4,834,869 $ 4,427,774 $ 5,040,672 $ 4,645, % 4.92% State 9,948,980 9,795,049 9,948,980 9,795, % 0.00% Federal 531, , , , % % Total revenues 15,315,233 14,802,996 15,315,233 14,802, % 0.00% Expenditures Instruction 9,280,777 8,700,964 9,280,777 8,700, % 0.00% Support services 5,481,007 5,449,085 5,481,007 5,449, % 0.00% Non-instructional/community 290, , , , % 0.00% Debt service 829, , , , % 0.00% Transfers 55,000 55,000 55,000 55, % 0.00% Total expenses 15,936,837 15,340,748 15,936,837 15,340, % 0.00% Budgeted use of fund balance $ 621,604 $ 537,752 $ 621,604 $ 537, % 0.00% 10

25 Capital Asset and Debt Administration Capital Assets At June 30, 2015, the District had $11,247,026 invested in a broad range of capital assets, including land, buildings and furniture and equipment. Table A-7 As of June 30, 2015 and 2014 Capital Assets - Net of Depreciation Governmental Activities Business-Type Activity Total 6/30/15 6/30/14 6/30/15 6/30/14 6/30/15 6/30/14 Land $ 270,901 $ 270,901 $ - $ - $ 270,901 $ 270,901 Site improvements 367, , , ,926 Buildings and improvements 10,018,865 10,435, ,018,865 10,435,658 Furniture and equipment 546, ,421 43,399 46, , ,295 $ 11,203,627 $ 11,694,906 $ 43,399 $ 46,874 $ 11,247,026 $ 11,741,780 Debt Administration As of July 1, 2014, the District had total outstanding bond principal of $5,835,000. During the year, the District reduced the principal of the bond by $660,000. Table A-8 As of June 30, 2015 and 2014 Outstanding Debt Governmental Activities Business-Type Activity Total 6/30/15 6/30/14 6/30/15 6/30/14 6/30/15 6/30/14 General Obligation Bonds Series of 2010 $ 5,175,000 $ 5,835,000 $ - $ - $ 5,175,000 $ 5,835,000 Other obligations include accrued sick and personal leave for specific employees of the District, other post-employment benefits for certain retirees, and net pension liability. More detailed information about our long-term liabilities is included in the Notes to Financial Statements. 11

26 Table A-9 reflects the comparisons of revenue and expenditure categories for governmental-fund types by percentages: Table A-9 Fiscal Years Ended June 30, 2015, 2014, 2013, 2012 and 2011 Revenues and Expenditures Local revenues 30.86% 29.92% 30.81% 30.77% 28.89% State revenues 61.75% 62.53% 61.00% 65.04% 60.81% Federal revenues 7.40% 7.55% 8.19% 4.19% 10.30% Instruction 61.91% 57.69% 57.43% 56.58% 57.17% Support services 30.74% 30.59% 35.52% 34.89% 32.27% Non-instructional/community 1.46% 1.33% 1.36% 1.74% 1.70% Facilities acquisition, construction and improvement 0.62% 5.13% 0.00% 0.74% 3.42% Debt service 5.27% 5.26% 5.69% 6.04% 5.43% Other 0.00% 0.00% 0.00% 0.01% 0.01% 2014/2015 Instruction Support services Local revenues State revenues Federal revenues Non-instructional/community Facilities and improvements Debt service Contacting the District s Financial Management Our financial report is designed to provide our citizens, taxpayers, parents, students, and creditors with a general overview of the District s finances and to show the Board s accountability for the money it receives. If you have questions about this report or wish to request additional financial information, please contact LuAnne Keebaugh, Business Manager, at Southern Huntingdon County School District, Pogue Road, Three Springs, Pennsylvania

27 STATEMENT OF NET POSITION June 30, 2015 Governmental Business-Type Activities Activity Total Assets Cash $ 5,937,566 $ 4,387 $ 5,941,953 Investments 2,000,000-2,000,000 Receivables Taxes - net of allowance for uncollectibles 656, ,598 Federal subsidies 146,317 42, ,612 State subsidies 375,461 3, ,513 Other 67, ,908 Internal balances 86,034-86,034 Inventories - 10,831 10,831 Prepaid bond insurance - net 15,780-15,780 Capital Assets Land and improvements - net 638, ,206 Buildings and improvements - net 10,018,865-10,018,865 Furniture and equipment - net 546,556 43, ,955 Total capital assets 11,203,627 43,399 11,247,026 Total assets 20,489, ,022 20,593,255 Deferred Outflows of Resources Deferred amounts on pension liability 1,287,981 41,019 1,329,000 Deferred amounts on refunding debt 28,411-28,411 Total deferred outflows of resources 1,316,392 41,019 1,357,411 Total assets and deferred outflows of resources $ 21,805,625 $ 145,041 $ 21,950,666 See Notes to Financial Statements. 13

28 Governmental Business-Type Activities Activity Total Liabilities Accounts payable $ 252,685 $ - $ 252,685 Deposits payable - 7,317 7,317 Retirees' health insurance payable Accrued expenses Salaries and benefits 1,092,407-1,092,407 Payroll withholdings 25,703-25,703 Interest 40,205-40,205 Internal balances - 86,034 86,034 Unearned revenue 3,977 4,840 8,817 Long-term liabilities Due within one year 680, ,000 Due in more than one year 23,881, ,693 24,490,566 Total long-term liabilities 24,561, ,693 25,170,566 Total liabilities 25,977, ,884 26,684,047 Deferred Inflows of Resources Deferred amounts on pension liability 2,267,778 72,222 2,340,000 Net Position Net investment in capital assets 6,043,249 43,399 6,086,648 Restricted for capital projects 2,308,071-2,308,071 Unrestricted (14,790,636) (677,464) (15,468,100) Total net position (6,439,316) (634,065) (7,073,381) Total liabilities, deferred inflows of resources and net position $ 21,805,625 $ 145,041 $ 21,950,666 14

29 STATEMENT OF ACTIVITIES Year Ended June 30, 2015 Program Revenues Operating Capital Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activity Total Governmental Activities Instructional $ 10,273,857 $ 64,415 $ 3,408,345 $ - $ (6,801,097) $ - $ (6,801,097) Instructional student support 1,098, ,728 - (851,450) - (851,450) Administration and financial support 1,095, ,303 - (979,805) - (979,805) Operation and maintenance of plant services 1,614, ,369 - (1,542,815) - (1,542,815) Pupil transportation 1,117, ,338 - (234,614) - (234,614) Student activities 269,505 42,875 29,737 - (196,893) - (196,893) Community services Interest on long-term debt 168,636-53,253 - (115,383) - (115,383) Total governmental activities 15,638, ,090 4,808,322 - (10,722,057) - (10,722,057) Business-Type Activity Food service 738, , , (30,068) (30,068) Total School District $ 16,377,253 $ 412,248 $ 5,212,880 $ - (10,722,057) (30,068) (10,752,125) General Revenues and Transfers Property taxes levied for general purposes, net 3,863,612-3,863,612 Public utility, realty transfer, earned income, and per capita taxes for general purposes, net 726, ,048 Grants, subsidies, and contributions, not restricted 6,915,814-6,915,814 Investment earnings 18, ,824 Miscellaneous income 85,877-85,877 Loss on disposal of capital assets (3,015) - (3,015) Transfers (12,489) 12,489 - Total general revenues and transfers 11,594,344 12,816 11,607,160 Changes in net position 872,287 (17,252) 855,035 Net Position - July 1, 2014, as previously stated 11,720,672 (23,809) 11,696,863 Prior period adjustment (See Note 16) (19,032,275) (593,004) (19,625,279) Net Position - July 1, 2014, as restated (7,311,603) (616,813) (7,928,416) Net Position - June 30, 2015 $ (6,439,316) $ (634,065) $ (7,073,381) See Notes to Financial Statements. Net (Expenses) Revenues and Changes in Net Position 15

30 BALANCE SHEET - GOVERNMENTAL FUNDS June 30, 2015 Total Capital Governmental General Projects Funds Assets Cash $ 5,611,546 $ 326,020 $ 5,937,566 Investments - 2,000,000 2,000,000 Receivables Taxes - net of allowance for uncollectibles 656, ,598 Federal subsidies 146, ,317 State subsidies 375, ,461 Other 67,850-67,850 Due from other funds 86,034-86,034 Total assets $ 6,943,806 $ 2,326,020 $ 9,269,826 Liabilities Accounts payable $ 234,736 $ 17,949 $ 252,685 Retirees' health insurance payable Accrued expenses Salaries and benefits 1,092,407-1,092,407 Payroll withholdings 25,703-25,703 Unearned revenue 3,977-3,977 Total liabilities 1,357,136 17,949 1,375,085 Deferred Inflows of Resources Delinquent property taxes 436, ,444 Fund Balances Restricted Capital projects - 2,308,071 2,308,071 Assigned Future retirement increases 2,010,671-2,010,671 Future healthcare increases 1,000,000-1,000,000 Budget , ,179 Unassigned 1,159,376-1,159,376 Total fund balances 5,150,226 2,308,071 7,458,297 Total liabilities, deferred inflows of resources and fund balances $ 6,943,806 $ 2,326,020 $ 9,269,826 See Notes to Financial Statements. 16

31 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2015 Total fund balances - governmental funds $ 7,458,297 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported as assets in governmental funds. The total cost of capital assets is $21,999,725, and the accumulated depreciation is $10,796, ,203,627 Property taxes receivable will be collected this year, but are not available soon enough to pay for the current period's expenditures, and therefore, they are deferred inflows of resources in the funds. 436,444 The difference between the re-acquisition price and the net carrying amount of the old debt is a deferred outflow of resources, which is not reported in the governmental funds. 28,411 Bond insurance premiums that are paid at bond settlement are expensed in the funds. The amounts attributable to future periods are reflected as prepaid insurance premiums. 15,780 Deferred inflows and outflows of resources related to pensions are applicable to future periods, and therefore, they are not reported within the funds. Deferred inflows and outflows related to pensions are as follows: Deferred inflows (2,267,778) Deferred outflows 1,287,981 Long-term liabilities, including bonds payable, compensated absences, and other post-employment benefits, are not due and payable in the current period; therefore, they are not reported as liabilities in the funds. These liabilities at year-end consist of: Bonds payable (5,175,000) Bond premium (13,789) Accrued interest (40,205) Compensated absences (205,290) Net pension liability (18,299,940) Other post-employment benefits (867,854) (24,602,078) Total net position - governmental activities $ (6,439,316) See Notes to Financial Statements. 17

32 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended June 30, 2015 Total Capital Governmental General Projects Funds Revenues Local sources $ 5,091,486 $ 10,475 $ 5,101,961 State sources 10,209,278-10,209,278 Federal sources 1,223,037-1,223,037 Total revenues 16,523,801 10,475 16,534,276 Expenditures Instruction 9,726,281-9,726,281 Support services 4,829,213-4,829,213 Operation of non-instructional services 229, ,450 Facilities acquisition, construction and improvement - 97,802 97,802 Debt service 828, ,244 Total expenditures 15,613,188 97,802 15,710,990 Excess (deficiency) of revenues over expenditures 910,613 (87,327) 823,286 Other Financing Sources (Uses) Refund of prior year revenues (22,041) - (22,041) Operating transfers out (12,489) - (12,489) Total other financing uses (34,530) - (34,530) Net changes in fund balances 876,083 (87,327) 788,756 Fund Balances - July 1, ,274,143 2,395,398 6,669,541 Fund Balances - June 30, 2015 $ 5,150,226 $ 2,308,071 $ 7,458,297 See Notes to Financial Statements. 18

33 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2015 Net changes in fund balances - governmental funds $ 788,756 Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlays are reported in governmental funds as expenditures. However in the Statement of Activities, the costs of those assets are allocated over their useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the period. Capital outlays 192,659 Less depreciation expense (564,438) (371,779) The net effect of various miscellaneous transactions involving capital assets (ie. sales, trade-ins, and donations) is to decrease net position. (3,015) Because some property taxes will not be collected for several months after the District's fiscal year ends, they are not considered as "available" revenues in the governmental funds. Deferred inflows of resources decreased by this amount. (8,016) Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the Statement of Activities, interest expense is recognized as the interest accrues, regardless of when it is due. The decrease in interest accrued reflected in the Statement of Activities is shown here. 3,712 Governmental funds report district pension contributions as expenditures. However, in the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as pension expense. District pension contributions 1,256,000 Cost of benefits earned - net of employee contributions (pension expense) (1,379,323) Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, they are not reported as expenditures in governmental funds. This is the sum of expenditures for compensated absences and other post-employment benefits. (65,516) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Repayment of long-term debt 660,000 Amortization of refunding loss (7,974) Amortization of prepaid bond insurance premium (4,428) Amortization of bond issuance premium 3, ,468 Changes in net position - governmental activities $ 872,287 See Notes to Financial Statements. 19